10 High Growth Utility Stocks To Invest In

6. NRG Energy (NYSE:NRG)  

5-Year Revenue CAGR: 24.66%  

No of Hedge Fund Investors: 56  

NRG Energy (NYSE:NRG) is a US-integrated power company offering a broad range of energy solutions to its customers. The company operates a diverse portfolio of generation facilities, including solar, wind, and natural gas.

In Q2, NRG Energy’s (NYSE:NRG) revenue increased 4.8% year-over-year to $6.58 billion. This strong performance was fueled by growth in the East and West regions, which saw high single-digit sales increases, and continued robust performance in Texas, where volume growth and rising subscriber counts were key drivers. The company’s adjusted EBITDA margin also expanded by 120 basis points to a record 14.2%, driven by lower retail supply costs and strong sales across Texas. Additionally, the company’s Vivint Smart Home business, a key contributor to EBITDA, is expected to continue growing due to rising demand for smart home solutions and a growing subscriber base.

NRG Energy (NYSE:NRG) has demonstrated strong recovery, supported by high demand in Texas and improvements in the East and West regions. Looking ahead, the company is well-positioned to benefit from electrification trends, driven by increasing data center demand and on-shoring activities. NRG Energy (NYSE:NRG) has also made progress on its strategic goals, including submitting brownfield development projects to the Texas Energy Fund, which focuses on repurposing former industrial sites for new energy development.

NRG Energy (NYSE:NRG) is projected to increase its earnings by 100% this year. Furthermore, the Electric Reliability Council of Texas (ERCOT), which manages the flow of electric power across the state, anticipates significant load growth in the coming years, forecasting over 60 gigawatts of growth through 2030. This growth, driven by on-shoring, data centers, and other large-load customers, presents a long-term demand opportunity for NRG Energy (NYSE:NRG).